Question:

Case study 1

"A gives an offer in the newspaper for the sale of his HP laptop for Rs. 15000. He also stated that Those who are willing to purchase can send a message to his mobile."" In this simple case consider the following situation and discuss the solution:

Question 1:

a)B was interested to purchase the laptop and sent a message stating that he wish to purchase for 12000. Was it an acceptance is given by B-

b) B was interested to purchase the same but he asked C to message on behalf of B. and C messaged as follows

"My friend B is interested to purchase your laptop for 15000". Here is this a valid Acceptance? is A binded by the acceptance.

c)B who is much interested in purchasing the laptop had called Mr.A and given the acceptance through his phone. Is A obliged for acceptance given by B.

Question 2

(a) Alternative Dispute Resolution (ADR) has some advantages.

Required

State FIVE advantages of ADR over litigation (5 marks)

(b) Under Section 32 of the Bills of Exchange Act, negotiation of a bill must

satisfy some requirements of endorsement.

State THREE of the requirements. (6 marks)

(c) Liman is an employee of Asuka Limited ("Asuka"). Liman supervises all the

distributors of Asuka's products. Konga also works in the haulage department

of Asuka. The Police are interrogating Konga for alleged possession of illicit

drugs while driving a truck belonging to Asuka and have impounded the truck.

A distributor of Asuka has lodged an official complaint with the company

secretary, alleging that Liman diverted some products of Asuka to a warehouse

that belongs to Liman.

Required

Explain briefly the remedies that Asuka has against Konga and Liman

respectively under employment law.

(4 marks)

(d) Three Certainties are mandatory for the validity of an express trust.

Required

Explain briefly two of the three Certainties. (5 marks)

(Total 20 marks)

Question 3

a).A financial consultant obtains different valuations of the company when it discounts the Free Cash Flow (FCF) as opposed to when it uses equity cash flow. Is it correct?

b).Which parameter better measures value creation; the EVA (Economic Value Added), the economic profit or the CVA (Cash Value Added)?